“The transaction data may be bad news for Bitcoin bulls, according to Charles Morris, chief investment officer of Newscape Capital Group in London, who invests in cryptocurrencies. Trading and purchases on the Bitcoin network, which can be measured by metrics like transaction volume, is indicative of price direction, he said,” according to Bloomberg.
Exchange traded funds linked to bitcoin could bolster volume in the digital currency, but U.S. regulators have not approved any such ETFs. Earlier this year, the Securities and Exchange Commission (SEC) told several issuers to scrap plans for bitcoin ETFs.
“Average transaction confirmation times have tumbled — though that may be in part because the technology that underlies Bitcoin has already been adapted to address some of these delays,” reports Bloomberg. “Not everyone agrees that lower volumes signal trouble for Bitcoin. It may be a healthy return to normality and signs that the market is maturing.”
Some media reports also indicate U.S. exchanges could be nearing futures trading on other digital currencies, such as Ripple and Ethereum.
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